When you become unable to pay your creditors, they will start calling and writing demanding payment, which can be very intimidating, threatening, and harassing. While bankruptcy is primarily used as a tool to help people get rid of their debts, it includes a provision to prevent further creditor collection actions from being taken. Learn more about this useful tool below.
What is the Automatic Stay
The automatic stay begins when a bankruptcy case is filed and prevents all collection activities against debtors on their property to collect pre-petition debts owed to their creditors. The automatic stay stops foreclosure actions, repossessions, creditor harassment (including telephone calls), lawsuits over unpaid credit card debt, etc.
Stopping Repossession Action
If a creditor tries to enforce its security interest by trying to repossess your collateral (car, home, business equipment, etc.) when you file for bankruptcy relief, your automatic stay will stop the repossession action. However, there are certain mechanisms that creditors can try to use to circumvent the automatic stay, such as filing a motion for relief from stay. It is important to speak with an experienced bankruptcy attorney to know your rights.
Time to Consult With An Attorney
If you have not filed bankruptcy yet, but find yourself being sued by one or more of your creditors, or have defaulted on your debts where you could be sued imminently, and you believe that filing bankruptcy could be the solution for you, contact our experienced attorney as soon as possible about these lawsuits.
If you are looking for a way to get your creditors off your back and find financial freedom, the experienced team at Law Offices of Jennifer LaRese, LLC can give you the assistance you need. Contact us through our website or give us a call at (203) 774-3332 to schedule your consultation today!